It`s been a long time since I`ve written about some of the pitfalls that a leader may face as he prepares to resign for a good reason. The last federal case of Barney v. Zimmer Biomet Holdings (Dist. Short, ND Indiana 2018) made me think, however, that a reminder might be correct. Barney was senior vice president of operations at Biomet, Inc. when he merged in 2015 with Zimmer Holdings, Inc. to become Zimmer Biomet Holdings, Inc. Following the merger, Barney Zimmers became senior vice president of global operations and logistics, where she worked until her resignation at the end of 2016. The executive may, quite rightly, terminate its employment under this agreement, in which case the executive is entitled to severance pay, as stated in the notice benefits section. For the purposes of this agreement, “good reason” means the occurrence of one of the following events, without the written consent of the executive: (i) a substantial decrease in the title, authority, status, duties or responsibilities of the executive; (ii) any reduction in the executive`s basic salary; (iii) a substantial breach of this agreement by the company; or (iv) the company requires management to locate its office in a location more than fifty miles outside its current office. As I have written in the last perspectives, if an executive is dismissed without a “cause” and his lawyer has done the right job, his dismissal will trigger a payment for him of a certain amount of severance pay to cushion his transfer of employment.
A clause rightly so is an important provision that can protect leaders from situations where their position does not turn out to be what they had imagined. To prevent executives from being “Tebowed,” executives should do their best to negotiate a basic clause in their employment contract. The time to focus on the particular “good reason” that the individual leader needs is when the executive`s employment contract is negotiated. This is when the employer of the company is eager to obtain the services of the executive and is most inclined to take into account the idea that there are specific “good reasons” suggested by the executive compensation lawyer, which are both reasonable and necessary to “seal the deal” to acquire the services of the executive client lawyer. What makes “good reason” must be adapted to the individual conditions of each manager, but here are some “good reasons”: Kenneth N. Winkler Kenneth N. Winkler, partner at Berman Fink Van Horn, has been practicing labour law since 1994. His practice focuses on advising employers and business leaders on the many laws and… Before properly terminating this agreement, the company`s management must notify the company of a prior written notification indicating its intention to rightly terminate and indicate the reasons why it believes there are reasons to rightly terminate the company. The company has thirty (30) days to correct the default.
If no corrective action is taken and the standard is not cured within 30, days, the executive can rightly terminate the contract. Barney argued not only a dismissal rightly, but also a right to an illegitimate constructive discharge. She stated that she had no choice but to resign for unbearable working conditions after refusing to mislead investors or terminate employees under false pretenses. Barney also claimed that she was indeed fired when the CEO, after refusing to fire employees, told her that he was “not happy with her refusal to follow her instructions and that they would continue to talk about it.” At this request, the Tribunal found that the CEO`s “scant observations” were not sufficient to justify effective dismissal and found that a constructive discharge was only granted if the applicant proved that he had been “forced to resign because [their] working conditions had become unbearable from the reasonable worker`s point of view”. For example, the court cited recent cases of accusations of serious racial slurs and other accusations of harassment by staff and a “